A federal investigation uncovered that over $135,000 in Head Start funds were misappropriated by the Santa Clara County Office of Education for unrelated expenses. The audit has raised questions about former Superintendent Mary Ann Dewan's leadership,

A new federal audit says the Santa Clara County Office of Education misused more than $135,370 in federal funds under the previous superintendent. But county leaders disagree on whether the error was an intentional cover-up or a simple mistake, another sign of deepening division and tension in an office plagued by controversy.

U.S. Head Start auditors told local education officials that they had discovered a pattern by previous administrators scoffing grant rules and rejecting calls for oversight.

A federal investigation has found more than $135,370 earmarked for preschool education program Head Start was misappropriated to pay for non-Head Start staff and credit card purchases, according to the Santa Clara County Office of Education.

Santa Clara County's top education office is planning for a wave of firings amid questions over top-heavy management and executive assistants with six-figure salaries.